My Girlfriend has a number of properties, including a 50% stake in our home, and she is on the edge of Bankruptcy.
We were wondering that if the properties had little or no equity, could she sell them to me and for what price etc before she files for bankruptcy, and how long does she need to leave it between me becoming the sole owner of the properties and her declaring bankruptcy?
Motorcycleman is correct. The OR will look at any property transactions dating back 5 years. The key here is to ensure you pay fair value for your girlfriend's interest in the property, otherwise the OR could deem it as a transaction at an undervalue and had the power to unwind the transaction. I would suggest getting a proper valuation from a chartered surveyor before proceeding down this line.
Just to remind you that the Trustee can go back ad infinitum if he/she suspects transfers were done to deliberately defraud creditors. I'm not suggesting that this is the case here of course!
For an informal chat about any financial difficulties, or advice as to the options available, I can be contacted via my website - www.melaniegiles.com
selling properties before declaring bankruptcy ?
Posted - 08 June 2008 : 01:27:23
